If you are new to trading, you can start by recording the shapes you notice on the chart in Excel - that way you will remember them faster.
How do I read a candlestick chart? Here are a few basic rules:
- Identify the major highs and lows of the swings on the chart;
- See if the swing points are higher, lower, or at the same level.
On a candlestick chart, you can see one of three situations adding up in the market:
- Swing highs and lows are moving up, signaling an uptrend;
- Swing highs and lows move downward, showing a downtrend;
- Swing highs and lows have the same height, indicating balance.